For the past 4 years, investors and home buyers benefited from the Federal Housing Administration’s (FHA’s) waiver of its 90-day flip rule that addressed a housing market which was flooded with foreclosures. This waiver ended at midnight, December 31, 2014. This means that, effective January 1, 2015, FHA has reverted to its former policy of not insuring a property loan where title was transferred within 90 day or less. There are some exceptions to the FHA’s suspension of the 90-day rule. They are as follows:
1. HUD properties under REO
2. Sales by other federal agencies of REO properties
3. Sales of properties by non-profit organizations approved for resale by HUD
4. Sales by state or federal financial institutions such as Fannie, Freddie or GSE
5. Sales of HUD properties where the President declares it a federal disaster area
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